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SpaceX’s orbital Starship launch debut may be pushed to 2022 by slow FAA reviews
In a rare sign of material progress, SpaceX and the FAA have finally released what is known as a draft environmental assessment (EA) of the company’s South Texas Starship launch plans.
Set to be the largest and most powerful rocket in spaceflight history when it first begins orbital launches, the process of acquiring permission to launch Starship and its Super Heavy booster out of the wetlands of the South Texas coast was never going to be easy. The Boca Chica site SpaceX ultimately settled on for its first private launch facilities – initially meant for Falcon 9 and Falcon Heavy but later dedicated to BFR (now Starship) – is simultaneously surrounded by sensitive coastal habitats populated by several threatened or endangered species and situated mere miles as the crow flies from a city whose temporary population oscillates from a few thousand to tens of thousands.
Reception and analysis of the draft and its timing have been mixed. On one hand, SpaceX’s draft EA – completed with oversight from the FAA and help from the US Fish and Wildlife Service (USFWS) – gives a number of reasons for optimism. In a sign that SpaceX is taking a pragmatic approach to the inevitable environmental review and launch license approval hurdles standing in front of orbital South Texas Starship launches, the company has actually pursued what is known as a “programmatic environmental assessment” (PEA).
Most importantly, that means that SpaceX’s Starbase PEA – if approved – will be more like a foundation or stepping stone that should make it easier to start small and methodically expand the scope and nature of the company’s plans for Boca Chica. Along those lines, as part of Starbase’s first dedicated environmental assessment, SpaceX has proposed a maximum of 23 flight operations annually while Starship is still in the development phase, including up to 20 suborbital Starship test flights and 3 orbital launches (or Super Heavy hops). Once SpaceX has worked out enough kinks for slightly more confident Starship operations, the company would enter an “operational phase” that would allow for as many as five suborbital Starship launches and five orbital Starship launches, as well as ship and booster landings back on land after all 10 possible launches.
In other words, SpaceX’s initial draft PEA is extremely conservative, requesting permission for what amounts to a bare minimum concept of operations for orbital Starship launches. At a maximum of 3-5 orbital launches per year, a PEA and subsequent launch license approved as-is would likely give SpaceX just enough slack to perform basic Earth orbit launches and no more than one or two orbital refilling tests per year. However, as an example, a five-launch maximum would almost entirely prevent SpaceX from launching Starship to Mars, the Moon, and maybe even high-energy Earth orbits without using all of its annual launch allotments on a single mission.
Perhaps most importantly, the draft PEA as proposed would unequivocally prevent SpaceX from performing the NASA Human Lander System (HLS) Moon landings it received an almost $3 billion contract to complete. Each HLS Starship Moon landing is expected to require anywhere from 10-16 launches to deliver a depot ship, HLS lander, and ~1200 tons of propellant to orbit. However, in terms of SpaceX’s prospects of developing Starship as quickly as possible, that’s actually a good thing. Above all else, SpaceX’s slimmed-down draft PEA should be far easier for the FAA to approve than a PEA pursuing permission for Starship’s ultimate ambitions – dozens to hundreds of launches annually – from the beginning. In theory, with this barebones PEA approved, SpaceX would then be able to build off the foundation with additional environmental assessments – like, for example, of expanding Starship’s maximum launch cadence.
Of course, SpaceX first needs the FAA turn this first draft PEA into a favorable environmental assessment (not a guarantee) before any of the above starts to matter. Based on the content of the draft itself and associated appendixes, SpaceX appears to have a decent shot at receiving a “finding of no significant impact (FONSI)” or “mitigated FONSI” determination. However, SpaceX began the process of creating that draft as far back as mid-2020, followed by an FAA announcement in November 2020. The implication is that the FAA managed to drag out a draft release process that some have estimated should have taken 3-4 months into an arduous 10-15 month ordeal.
Combined with the uphill battle it’s starting to look like SpaceX will have to wage for an orbital Starship launch license in South Texas, it’s looking increasingly likely that Starship, Super Heavy, and Starbase will be technically ready for orbital launch tests well before the FAA is ready to approve or license them. Barring delays, the public now has until mid-October to read and comment on SpaceX’s draft PEA, after which the FAA and SpaceX will review those comments and hopefully turn the draft into a completed review. Even if the FAA were to somehow take just two months to return a best-case FONSI, clearing Starbase of environmental launch hurdles, it’s hard to imagine that the agency could then turn around and approve an orbital Starship launch license – or even a one-off experimental permit – in the last few weeks of 2021.
Ultimately, that means that nothing short of a minor miracle is likely to prevent the FAA’s environmental review and licensing delays from directly delaying Starship’s orbital launch debut. There is at least a chance that Starship, Super Heavy, and Starbase’s orbital launch site wont be ready for orbital launches by the end of the year, but it’s increasingly difficult to imagine that all three won’t be proof tested, qualified, and ready for action just a month or two from now. For the time being, we’ll just have to wait and see where the cards fall.
Elon Musk
Tesla CEO Elon Musk drops massive bomb about Cybercab
“And there is so much to this car that is not obvious on the surface,” Musk said.
Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.
The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.
The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.
It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.
Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”
And there is so much to this car that is not obvious on the surface
— Elon Musk (@elonmusk) January 2, 2026
As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.
Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.
It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Tesla CEO Elon Musk drops massive bomb about Cybercab
Tesla Q4 delivery numbers are better than they initially look: analyst
